Fusion Bit, an online scheme first appearing last December, initially operated as a pyramid structure. Affiliates paid either $5 or $25 to join, earning commissions solely by recruiting new members into the same system. This initial model, which lacked any sustainable product or service, collapsed shortly after its launch. The platform subsequently relaunched in February.

The identity of Fusion Bit's operators remains undisclosed. The website domain registration uses anonymity services, preventing public identification of its owners or administrators. This lack of transparency is a common characteristic of high-risk schemes.

Fusion Bit offers no retailable products or services to consumers. Its sole "offering" is affiliate membership itself, meaning participants can only market the opportunity for others to join.

The revamped Fusion Bit compensation plan centers on a bitcoin gifting arrangement, structured within a 5x4 matrix. A 5x4 matrix places one Fusion Bit affiliate at the top. Five positions directly beneath them form the first level. Each of these five positions then branches into another five, creating twenty-five positions for the second level. Levels three and four expand similarly, each level housing five times more positions than the one above it.

Each level of this matrix operates as a distinct gifting tier. An affiliate begins by signing up and sending 0.0002 BTC as a gift to the person who recruited them. This initial payment qualifies the new affiliate to receive 0.0002 BTC from five affiliates placed into the first level of their personal matrix.

Higher matrix levels follow the same pattern. To unlock the ability to receive gifts at a given level, an affiliate must first make a corresponding gifting payment for that tier. The tiers are structured as follows:

For level 1, affiliates gift 0.0002 BTC and become eligible to receive 0.0002 BTC from five subsequently recruited affiliates.

Level 2 requires a gift of 0.0008 BTC, which then qualifies the affiliate to receive 0.0008 BTC from twenty-five affiliates.

At level 3, a gift of 0.01 BTC unlocks the ability to receive 0.01 BTC from one hundred and twenty-five affiliates.

The highest tier, level 4, involves gifting 0.1 BTC. This payment allows the affiliate to receive 0.1 BTC from six hundred and twenty-five affiliates.

To join Fusion Bit as an affiliate, a prospective member must initiate a 0.0002 BTC gifting payment to their recruiter.

Fusion Bit 2.0 operates identically to the initial pyramid scheme, only disguised with bitcoin gifting. The model ensures that those who join later are the most likely to lose money. Funds flow upwards, directly to earlier participants and, ultimately, to the anonymous administrator.

The structure of pass-ups across the four matrix levels concentrates the majority of incoming funds at the top. This design ensures the anonymous Fusion Bit admin, along with a select group of early participants, collects most of the deposited bitcoin. The vast majority of affiliates will not recover their initial gifting payments as the scheme inevitably runs out of new recruits.

Participants in such gifting schemes should understand the high risk of financial loss. The U.S. Securities and Exchange Commission (SEC) warns that these schemes are illegal pyramid structures, disguised as gifting circles, where profits depend solely on recruiting new members.